Graduating College Without a Credit History? Here's How to Build One

Get ready to see your credit history grow more robust by the day.

Your credit history is probably one of those things you don't think about often -- until you need to. But without a credit history, you may not end up with a credit score attached to your name. And in many cases, having no credit score can be just as difficult as having poor credit. 

If you don't have a credit score, lenders won't know how risky a borrower you are. And they might hesitate to give you a loan or credit card when you apply for one. 

If you're a new college grad, you may not have a credit history if you were never responsible for paying your own bills. If that's the case, here are some steps you can take to build credit quickly.

1. Open a secured credit card

With a traditional credit card, you're given a spending limit based on factors like your income and credit score, and as you pay your bills on time, your credit can improve. But you may not qualify for a regular credit card without a credit history. In that case, you aren't doomed, because you can get a secured credit card instead.

A secured credit card differs from a traditional one in that you put down a deposit that serves as your personal spending limit. Then, as you charge expenses on that card and pay your bills on time, that positive activity gets added to your credit history. It's an easy way to build up some credit, even though you generally won't get the benefits of a regular credit card, like cash back on your purchases. 

2. Get added as an authorized user to a family member's card

You may not want a secured credit card and you may not qualify for a traditional credit card of your own. In that case, see if a family member is willing to add you to their existing account as an authorized user. What'll then happen is that as that card is paid in a timely manner, that positive activity will be associated with your credit history. 

Of course, being added as an authorized user to someone else's card doesn't mean you should feel free to charge expenses on it (unless that's the arrangement you come to). In fact, it's a good idea to set ground rules so the person who adds you to their card doesn't wind up regretting it, and so you don't accidentally upset the person who's doing you a big favor.

3. Ask your landlord to report your rent

If you don't have a credit history, you might struggle to rent a home in the first place. But if you're able to -- say, by paying a few months of rent upfront -- then it pays to sign up for a service like Rental Kharma, which allows your rent to get reported for credit purposes. 

Normally, rent payments aren't reported to the credit bureaus that track your credit history. But you can arrange for that to happen, and from there, if you pay your landlord on time every month, it should reflect positively on you.

Not having a credit history can be a challenge, and if you're fairly young, that's a common issue to have. These moves could help you build credit quickly so you're not stifled financially as you navigate post-college life.